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Strategies to Sustainably Fulfill Energy Needs

London22nd June 2010

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Expected Energy Demand Growth

1

Significant energy demand growth expected in any scenario

China, India and ME

Oil & Gas will continue to be main sources of energy, even in more environmentalist scenario

Increasing importance of biofuels and renewables

Coal consumption will significantly decrease if relevant achievements are made on controlling CO2 emissions

Source: IEA World Energy Outlook 2009

MTOE

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Who will supply Oil & Gas Needs?

1258 Billion Barrels

185 Trillion Cubic

Meters

Oil Natural Gas

Source: BP Statistical Review 2009

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Oil Production Growth

3

OPEC remains as main source of crude production growth in any scenario, particularly from countries in the Gulf

Significant decline of non-OPEC production, with the exception of Brazil and Russia

Canada Oil Sands growth will be affected if more controls on CO2 emissions are in place

Source: IEA World Energy Outlook 2009

MBD

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Natural Gas Consumption Trends

4

Source: IEA World Energy Outlook 2009

Power Generation will drive natural gas consumption increase

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Middle East: Main source of energy supply

Significant investments will take place in the coming years to supply world and local energy needs:

KSA: Saudi Aramco to Invest $90B in O&G Projects to 2015

Iraq: recently awarded 11 mega contracts to IOC’s that may allow to at least double current production capacity in 10 years time

Qatar: Several joint ventures with IOC provides access to latest technologies, paving the way to significantly increase oil & gasproduction

Iran: Plans aims to increase oil production capacity to 8 MMBD by 2015. It will also become a top player on the natural gas business in the region

Kuwait: Strategy in place to increase oil production capacity to 4 million barrels per day by 2020

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Illustrative

KOC Way Forward

Strategy focused on the achievement of sustainable crude oil production capacities in Kuwait

Commitment to security of supply for market stability, stable production growth and OPEC quota compliance

Production Capacity at 4.0 MMBD by 2020

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• 3D Seismic• Dynamic Pre- And Post Processing Techniques• Horizontal Drilling / Multiple Laterals• Game changing technologies – Smart Fields

More Barrels from Matured Fields

CO2 Injection

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Heavy Oil Development

Kuwait

South Ratqa

Heavy Oil: Main source of growth

Significant reserves of 11-15 API located in North Kuwait

Main source of production growth

Targets:

60 kbpd in 2015

270 kbpd in 2030

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Onshore & Offshore Gas

Optimize the production and utilization of associated gas

Maximize production of non-associated gas, both onshore and offshore

Support the energy requirements for the State of Kuwait and its objectives to protect the environment

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Our Challenges

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Human Resources

Unprecedented skills shortage worldwide

Insufficient expertise on EOR, unconventional oils, offshore gas

Technology

Shift from “easy” oil to more difficult oils

A structural, upward cost shift

Access to latest technologies

Environment

Increasing CO2 emissions

Need to increase HSSE standards for safer and reliable operations

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Opportunities – Human Resources

Employment and career opportunities in KOC

We want to become employer of choice in the Gulf Region

We have a plan in place to recruit and retain talented people

We provide a highly performance-oriented environment that motivates and supports development of leadership and technical capabilities

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Key technologies available for projects development

Well Testing

IT Infrastructure, Asset & Data Management

Artificial Lift& Completions

4-D Seismic

Directional Drilling& Measurements

Reservoir Studies

Wireline Logging& PerforationCementing,

Coiled Tubing& Stimulation

Integrated Project Management

Unconventional Reservoirs

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Opportunities: Sustainable partnerships

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Environmental and Carbon Agenda

Full implementation of HSSE Management System in KOC to achieve highest standards on safe and clean operations

Significant reductions on gas flaring and CO2 emissions

Implementation of CO2 capture and sequestration technologies from all major stationary CO2 sources in Kuwait through agreements with specialized companies

Implementation of Air Quality Monitoring Services Project

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Conclusions

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By implementing a comprehensive strategy to effectively manage current energy trends, KOC will continue to be a leading energy company in the Middle East

KOC will develop oil & gas production capacity to supply market needs, in both local and international markets

Several challenges lies ahead. Partnerships and cooperation withIOC’s and Service Companies will be a key success factor to overcome challenges and to develop opportunities

Corporate Social Responsibility and highest HSSE Standards will support KOC contribution to Sustainable Development